Common Questions About Professional Indemnity Insurance

At All Trades Cover, we are here to help you find the right insurance for your business. We understand that professional indemnity insurance is one of those tricky ones that is sometimes forgotten. There are a lot of questions around professional indemnity insurance in Australia such as “do I actually need professional indemnity insurance” or “I have public liability insurance; won’t that cover me for the same thing?” 

You asked we listened, and we have answered. Below are a few answers for some of the frequently asked questions we receive regarding professional indemnity insurance. If have any questions left unanswered, please don’t hesitate to contact us.

Do sole traders need professional indemnity insurance?

As a sole trader, it is important that you have the right insurances to cover you if something goes wrong. Without the right cover, you could be facing an expensive and time-consuming legal battle. Professional indemnity insurance is one of those insurances you need if you provide any kind of advice free of charge as part of your job. This could be something as simple as a landscaper advising how often to water a plant. In fact, it is one of the main two insurances that we highly recommend for a sole trader. Professional indemnity insurance will cover you if something goes wrong when a client takes your advice and suffers any financial loss. This will hopefully give you peace of mind and the confidence to provide advice as part of your services.

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How much does professional indemnity insurance cost?

The cost of professional indemnity insurance will vary depending on a number of factors and the level of cover you require. 

All Trades Cover offers easy online quotes with optional coverage packages customised to your needs. We offer a friendly, reliable service, and have a proven record of customer satisfaction with our clients.

Remember not to opt for the cheapest policy you can find – you need to be confident that you have the right level of cover in place and a cheaper policy may mean that you don’t have the right level of cover.

Contact us for a professional indemnity insurance quote today from our friendly and professional experts. We also provide various extensions to your chosen package per your requirements.

How to calculate professional indemnity insurance?

Your professional indemnity insurance is calculated based on a number of factors. This includes the type of work you do, the size of your business, the number of employees you have, your annual turnover, your history of insurance claims and how much cover you require. Put simply, the higher your risk of an indemnity claim, the more your insurance premiums will cost. Our friendly team at All Trades Cover will be able to provide you the right level of cover based on your business’ circumstances. Please contact us today for your professional indemnity insurance quote.

Does public liability insurance cover professional indemnity insurance?

The short answer is no, public liability insurance is totally different to professional indemnity insurance. It is important to understand the difference between these two insurances when choosing the right cover. Professional liability insurance is for more of the hands-on portion of your business. It protects you from the financial risks of causing damage to a third party’s property or personal injury to other people in the day to day operation of your business. Whereas professional indemnity insurance will cover you from claims made against you in regards to advice that you have provided. Professional indemnity insurance is often overlooked as we are more focussed on the hands-on side of things, however it is equally as important as public liability insurance. 

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Why do you need professional indemnity insurance?

If you provide any kind of advice free of charge as part of your job, you need professional indemnity insurance. The reason being that if something goes wrong when a client takes your advice and suffers any financial loss, you will be covered. If you don’t have professional indemnity insurance and offer advice that unfortunately results in financial loss, you will be held liable for these costs which can be quite expensive.

For example – As a plumber, you may provide your client advice such as when to replace a water pipe. If the client takes your advice onboard, and the pipe bursts before you said it needed to be replaced and they suffer a financial loss, you may be held liable to cover the costs. If you have professional indemnity insurance, it will cover costs involved with a claim and the level of cover will depend on your specific policy.

How do you get professional indemnity insurance?

Getting professional indemnity insurance is really quite simple. All Trades Cover offer easy online quotes with optional coverage packages customised to your needs. We offer a friendly, reliable service, and have a proven record of customer satisfaction with our clients.

Contact us for a professional indemnity insurance quote today.

Johnny Thompson

Johnny Thompson is a senior reporter for Generator Research in Los Angeles, reporting on technology, business, finances, and more. He previously worked as a reporter for the Wall Street Journal and got his start at newspapers in New York, Connecticut, and Massachusetts.

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